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Driving Rules in Panama
Tips, Laws, and Local Insights for a Smooth Drive Around Panama
Speed
- Urban
- 50 km/h
- Rural
- 80 km/h
- Highway
- 100 km/h
Drink Limit
- Max Blood Alcohol Allowed
- 0.05%
Fuel Price
- Gass
- $1.04/Liter
- Diesel
- $0.86/Liter
Required Documents
- Driving License
- Passport
- International Driving Permit
- Insurance
Seat Belt
- Front Seat Belt
- Yes
- Rear Seat Belt
- Yes
- Road Side
- Right
Min Age
- Min Drive Age
- 18
- Min Rent Age
- 21
Requirements to Drive a Car in Panama
To drive a car in Colon you must be at least 18 years old. To rent a car in Colon you must be 21 years old. Some car rental companies in Colon admit minor clients although they charge an extra tax for the service.
Among the documents that you must present when driving in Colon are:
- Your Identification Document
- Valid driver's license
- Passport if you are a foreigner
In Panama, Civil Liability Insurance is mandatory so you must have proof of it. If you rent a car in Colon, the insurance will already be included in the total cost of the rental.
Driving Laws in Panama
Speed Limits
The maximum speed limit for light vehicles in Colón is 50 km/h in urban areas, 80 km/h on the highway, and 100 km/h on motorways. These regulations aim to ensure road safety and smooth traffic flow in different parts of the city and its surroundings. It is important to adhere to these limits to avoid fines, as Panama strictly enforces speed control, especially on the Pan-American Highway and other main roads where traffic police use radar guns to monitor drivers.
Toll Roads
In Panama, since June 2025, the electronic Panapass system is mandatory for toll payments on the North and South corridors. Cash payments are not accepted; tolls are automatically charged via a sticker installed in the vehicle. Passing with insufficient balance results in a $10 fine. Recharges can be made online, at supermarkets, via WhatsApp, and other channels. Installing the Panapass is easy and does not require an appointment. This system speeds up traffic flow and eliminates lines at toll booths.
Traffic Lights
Traffic regulation in Panama relies heavily on traffic lights located at major intersections in cities and highways. Many of these lights are synchronized to enable smoother vehicle flow. Since January 2025, the Transit Authority (ATTT) has installed cameras at strategic points to enforce photo fines for violations such as running red lights, speeding, and stopping on pedestrian crossings. This system aims to improve road safety and reduce congestion. Additionally, citizen inspectors can report violations. Obeying traffic signals is crucial to avoid fines and accidents.
Road Side
In Colon, as in all of Panama, you travel on the right side of the road. The left side is only used to pass another vehicle.
Where and how to park in Panama?
There are several areas that have free parking on the road. You can park in these places as long as you do not violate the traffic laws that regulate parking. Park as long as a vertical sign does not prohibit it or there is no yellow line on the sidewalk.
In shopping centers and hotel areas you can find parking with parking meters or ticket machines and covere. There are other places, such as the beach area or vacant lots where you will find improvised or irregular parking lots that offer parking service.
They are cheaper, although they are not as reliable as official regulated parking. Security and parking Although Colon is not an area that is characterized by theft, you should take into account basic rules to avoid the theft of your car or its accessories.
- Never leave your vehicle keys in the switch of your vehicle.
- Leave your car windows closed.
- Do not park in remote areas or where there is little traffic of people.
- Do not leave your car in poorly lit streets at night
Disabled parking: In several places you can find exclusive parking areas for the disabled in Colon, however, it is not a culture that is widespread throughout the city. If you have a disability, it may be difficult to find parking.
Talking to the parking attendant may be helpful in finding a better area to park your car. Prevent your car from being towed for being badly parked Be careful to avoid obstructing the traffic or the exit of other vehicles, as well as not blocking garage exits, building entrances, etc. to prevent your car from being towed. Although these incidents are rare, they can occur, especially when it comes to a traffic obstruction.
What to do in an emergency in Panama?
The Emergency number in Panama is 911, which is valid for police, fire and ambulance services.
In the event of an accident with your vehicle in Colon, you should immediately call the police. In case someone is injured you must call an ambulance. If no people are injured, you must move your vehicle to avoid obstructing traffic on the road. You should also call your insurance company.
In case your car is rented then immediately call the number of the office where you rented the car. In Panama, civil liability insurance is mandatory, it will cover you in the event of damage to third parties. If you purchased other insurance such as collision insurance, etc., these may offer me greater protection in case of accidents.
In case of a breakage then also call the office where you rented the car and they will take care of it.
Frequently Asked Questions
Frequently Asked Questions
Is it safe to travel to Colon?
Traveling to Colon is safe. Colon is not characterized by being a violent city. Its rates of violence are lower than those of most cities in Panama, the United States and Europe.
Best time to visit
The best time to travel to Colon, as another paces in Panama, is the dry season, which runs from mid-December to mid-April. Although temperatures are higher and the weather more muggy during the rainy season, you can actually travel at any time of the year.
If you are looking to make a cheaper trip, then travel in the low tourist season, which coincides with the wet season. This in Panama runs from the month of May to November.
Driving FAQs
What type of car is the most recommended to drive in Colon?
The most appropriate type of car to drive in Colon will depend on your taste and your needs. For a family trip or with a large group of people, it is best to rent a van or minivan. If what you are looking for is an economical car, the best thing to do is rent a compact. If you want to venture to the most intricate, jungle or rural areas with difficult access roads, the most appropriate thing is to rent a suv.
What are the best places to park in Colon?
To park in Colon safely, it is best to look for official parking lots, even if they are a little more expensive. Those parking lots located in shopping centers, hotels or areas of tourist interest generally have parking meters or official parking garages that have protection measures.
Avoid parking in remote areas, on low-traffic streets or in poorly lit areas at night.